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HomeMy WebLinkAbout2022-12-06 City Council Work Session PacketAgenda City Council Work Session City of Edina, Minnesota Community Room, City Hall Tuesday, December 6, 2022 5:30 PM I.Call To Order II.Roll Call III.2023 Budget and Levy and 2023-2028 CIP IV.Development Review Process V.Adjournment The City of Edina wants all residents to be comfortable being part of the public process. If you need assistance in the way of hearing ampli*cation, an interpreter, large-print documents or something else, please call 952-927-8861 72 hours in advance of the meeting. Date: December 6, 2022 Agenda Item #: III. To:Mayor and City Council Item Type: From:Alisha McAndrews, Finance Director Item Activity: Subject:2023 Budget and Levy and 2023-2028 CIP Discussion CITY OF EDINA 4801 West 50th Street Edina, MN 55424 www.edinamn.gov ACTION REQUESTED: Discussion only. INTRODUCTION: The City Manager will present the 2023 operating budget and levy and the 2023-2028 Capital Improvement Plan (CIP) to Council Members. The presentation will cover the changes that have occurred to the market and the City's operating expenses since Council approved the 2022-2023 Biennial Budget at the Dec. 7, 2021, City Council meeting. Staff will ask for Council approval of the 2023 levy later at the Council meeting. The City Manager will also provide an update on the Capital Improvement Plan (CIP) recommendation to Council, which includes a levy increase of $1 million specifically for special park improvements in 2023. The City Manager will ask Council to approve the 2023-2028 CIP at the Council meeting later that evening. ATTACHMENTS: Description Staff Presentation The CITY ofEDINA 2023 CIP, Budget and Final Levy December 6, 2022 The CITY ofEDINAAgenda •2023-2028 Capital Improvement Plan •2023 Budget and Levies •Tax Comparisons •Questions www.EdinaMN.gov 2 The CITY ofEDINA www.EdinaMN.gov 3 Edina Consolidated Budget $144M Governmental Funds $82.4M General Fund $55.1M Debt Service Fund $6M Construction Fund $16.2M Special Revenue Funds, including HRA $5.1M Enterprise Funds $54.8M Utility Fund $24.4M Liquor Fund $15.7M Park Enterprises $14.6M Internal Service Funds $7M Risk Management $1.1M Equip. Operations $2M IT $2.4M Facilities $1.4M 2023 Consolidated Budget The CITY ofEDINABiennial Budget Process 2022 (Even Year) First year of 2022- 2023 Budget Review/approve of 2023-2028 CIP 2023 (Odd Year) Second year of 2022- 2023 Budget Approve 2024-2025 budget, including CIP levy www.EdinaMN.gov 4 The CITY ofEDINA www.EdinaMN.gov 5 The CITY ofEDINABudget Goals and Values 6 Budget Pillars: The broad goals that must be achieved by every budget. Budget Values: The beliefs that guide decision-making. Budget Strategies: The specific actions, projects, and targets to strengthen the pillars in this two-year budget. The CITY ofEDINABudget Pillars City infrastructure, facilities, technology, and equipment meets community needs now and in the future. City planning fosters healthy, connected, sustainable development that enriches the lives of current and future residents. City government fosters an inclusive, informed and engaged community. City services enhance the safety, wellbeing, and quality of life experienced in Edina. The CITY ofEDINABudget Values Stewardship •We make wise investments that focus on the best long-term value for residents. Equity •We provide equitable opportunities for people to participate in their City government and access City institutions, facilities, and services. Health •We use a Health-in-All Policies approach to promote and protect the physical, mental, and social wellbeing of all people who live, work, or visit Edina. Sustainability •We ensure that our policies, decisions, and plans have a positive impact on people and the planet now and for future generations. The CITY ofEDINATimeline www.EdinaMN.gov 9 Date Event Action May 13 Finance Deadline Departments submit CIP requests June 2 City Council Meeting 2023-2028 CIP Overview & Discussion June 22 ELT Meeting ELT review and prioritization July 19 Work Session Council review & feedback August 16 Work Session Draft CIP presented to Council Sept 20 Council Meeting Adopt preliminary 2023 levy Dec. 6 Council Meeting Public hearing and adopt CIP Dec. 20 Council Meeting Adopt 2023 operating budget & levy The CITY ofEDINA 10 $- $1 $2 $3 $4 $5 $6 $7 MillionsDebt Service Levy Projection Fire Station Public Works Sports Dome Refunded Gymnasiums Fire Station 2* Debt Service Levy Projection The CITY ofEDINAProjected CIP Levy www.EdinaMN.gov 11 Budget Projection Projection Projection Projection Projection Projection Projection 2023 2024 2025 2026 2027 2028 2029 2030 Debt Service Fund Levies City Hall Debt Service - - - - - - - - Gymnasium Debt Service 392,000 392,000 398,000 - - - - - Fire Station Debt Service 403,000 403,000 406,000 403,000 404,000 - - - Public Works Facility Debt Service 1,269,000 1,508,000 1,512,000 1,508,000 1,506,000 1,506,000 456,750 - Sports Dome 1,166,000 1,168,700 1,165,100 1,166,100 1,166,400 1,164,800 1,166,400 1,167,000 Community Health & Safety Center Debt Service*2,304,800 3,086,700 3,090,200 3,091,400 3,089,100 3,090,200 Debt Service Fund Subtotal 3,230,000 3,471,700 5,785,900 6,163,800 6,166,600 5,762,200 4,712,250 4,257,200 Increase From Prior Year (%)-0.06%7.48%66.66%6.53%0.05%-6.56%-18.22%-9.66% Construction Fund Levies Capital Improvement Plan Levy 2,000,000 2,000,000 2,000,000 2,400,000 2,400,000 3,000,000 4,000,000 4,000,000 Equipment Levy 2,350,000 2,470,000 2,590,000 2,720,000 2,860,000 3,000,000 3,150,000 3,310,000 Street Special Levy 1,210,400 1,480,840 1,761,600 2,053,000 2,355,400 2,669,000 2,994,200 3,331,400 Special Park Improvement Levy 1,000,000 1,000,000 400,000 400,000 400,000 400,000 1,000,000 1,000,000 Construction Fund Subtotal 6,560,400 6,950,840 6,751,600 7,573,000 8,015,400 9,069,000 11,144,200 11,641,400 Increase From Prior Year (%)26.40%5.95%-2.87%12.17%5.84%13.14%22.88%4.46% The CITY ofEDINA2023-2028 CIP by Category www.EdinaMN.gov 12 Buildings 14% Equipment and Vehicles8% Infrastructure63% Land0% Parks 14% Technology 1% $300 million in capital investments across the City in 2023-2028. The CITY ofEDINA Construction Fund 52% HRA Funds 3% Other Funds 2% PACS Fund 2% Utility Funds 41% 2023-2028 CIP by Funding Source www.EdinaMN.gov 13 Bridge Maintenance 0% PEG Comcast Fees 0% SPIL 2% Grant/Donation 3% CIP Levy 8%MSA 9% Special Street Levy 9% Special Assessment 11% Equipment Replacement Levy 13% CIP Bonds 19%LOST 26% The CITY ofEDINACIP Highlights •Over $43 million invested in Parks, including: New 43-acre Fred Richards Park New amenities and upgrades at Braemar Park & Arena 3 park shelter replacements 15 playground equipment replacements 8 other park improvement projects •Water and sewer system capacity expansions •Design & construction of Community Health & Safety Center •Enhancements to security, energy efficiency, and critical infrastructure in City buildings •Improvements at the Senior Center, CLP and Edinborough www.EdinaMN.gov 14 The CITY ofEDINA Parks & Rec CIP Projects www.EdinaMN.gov 15 26 31 1714 19 615 1 0 15 30 2023 2028 w/o Funding 2028 w funding Age of Playgrounds Oldest PG Average PG Newest PG www.EdinaMN.gov 16 Budget Budget Budget 2021 2022 2023 General Fund Levies General Operating Levy 33,986,471$ 36,708,036$ 39,820,200$ General Fund Subtotal 33,986,471 36,708,036 39,820,200 Increase From Prior Year (%)6.14%8.01%8.48% Arts and Culture Fund Levies Arts and Culture 20,000 - Arts and Culture Fund Subtotal 20,000 - - Increase From Prior Year (%)0.00%-100.00% Debt Service Fund Levies Gymnasium Debt Service 392,000 392,000 392,000 Fire Station Debt Service 402,000 403,000 403,000 Public Works Facility Debt Service 1,695,000 1,269,000 1,269,000 Sports Dome 1,162,400 1,168,000 1,166,000 Fire Station 2 Debt Service* Debt Service Fund Subtotal 3,651,400 3,232,000 3,230,000 Increase From Prior Year (%)-20.56%-11.49%-0.06% Construction Fund Levies Capital Improvement Plan Levy 2,000,000 2,000,000 2,000,000 Equipment Levy 2,130,000 2,240,000 2,350,000 Street Special Levy 950,000 1,210,400 Special Park Improvement Levy - - 1,000,000 Construction Fund Subtotal 4,130,000 5,190,000 6,560,400 Increase From Prior Year (%)45.94%25.67%26.40% HRA Fund Levies HRA Operating Levy 230,400 237,300 244,400 HRA Fund Subtotal 230,400 237,300 244,400 Increase From Prior Year (%)20.00%2.99%2.99% Total Property Tax Levy 42,018,271$ 45,367,336$ 49,855,000$ Increase From Prior Year (%)5.95%7.97%9.89% 2021-23 Tax Levy The CITY ofEDINA2023 Tax Levy www.EdinaMN.gov 17 •Additional $872,902 General Operating Levy •General wage increases, market adjustments, worker’s compensation increases and all other inflationary increases •Additional $1,000,000 Special Park Improvement Levy •Capital Needs for Parks and Recreation Facilities 2023 Budget Drivers •Employee compensation & benefits •Worker’s compensation costs •Street Improvement Levy (multi-year) •Paramedic/Firefighters (end of SAFER grant) •Special Parks Improvement Levy •Increase in cost of goods,supply chain,and other inflationary pressures. EdinaMN.gov 18 2022-2023 Budget Highlights •Increase personnel budgets to remain competitive attract and retain employees •Playground replacements at Todd, Walnut Ridge & Strachauer •Add new staff in Fire and Police •Community Health & Safety Center planning •Proactive sidewalk maintenance inspections •Increased street sweeping frequency and quality •Improve service levels for commercial assessing •Special Park Improvement Levy EdinaMN.gov 19 How Edina Compares EdinaMN.gov 20 2023 Preliminary Levy Increase of 9.89% Jurisdiction 2023 Proposed Tax Increase Hennepin County City Average 10.1% Statewide City Average 9.1% Hennepin County 4.5% SD 270 (Hopkins)10.2% SD 271 (Bloomington)4.1% SD 272 (EP)14.5% SD 273 (Edina)9.7% SD 280 (Richfield)3.0% 2023 Estimated Property Tax Distribution www.EdinaMN.gov 21 Hennepin County 29% City of Edina 23% Edina School District 41% Watershed, Metro Districts, & Other 7% Change in Property Tax by Property Type for 2023 EdinaMN.gov 22 23% 38% 8% 10% 6% 5% 10% Commercial/Industrial <(5.0)%(4.9)-(0.0)%0.1-4.9%5-9.9%10-14.9%15-19.9%>20% 1%9% 24% 33% 24% 7%2% Single Family/Apartments <(5.0)%(4.9)-(0.0)%0.1-4.9%5-9.9%10-14.9%15-19.9%>20% The CITY ofEDINAEstimated Market Value 9.4 9.1 8.9 9.0 9.8 10.4 10.9 11.6 12.4 12.9 13.3 15.5 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022$ Billionswww.EdinaMN.gov 23 2023 Estimated Levy Impact www.EdinaMN.gov 24 Edina Median Value Home 2021 2022 Change $547,800 $659,900 15% Edina Estimated Market Value 2021 2022 Change $13.3M $15.5M 12.4% The CITY ofEDINA2023 Estimated Levy Impacts •Total EMV increasing by 12.4% for taxes payable in 2023 •The MVH is $659,900. •74% of single family homes in Edina seeing valuation increase of >11% www.EdinaMN.gov 25 2023 Estimated Levy Impacts EdinaMN.gov 26 28.03% 9.89% increase 28.93% 14% increase 0 20 40 60 80 100 120 140 160 180 200 2022 2023$ MillionsReduction in tax capacity rate in 2023 Levy Tax capacity Property Tax History www.EdinaMN.gov 27 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 City tax $1,102 $1,140 $1,195 $1,266 $1,319 $1,393 $1,474 $1,566 $1,623 $1,715 $1,930 Total tax $5,449 $5,606 $5,835 $6,276 $6,367 $6,715 $6,982 $7,251 $7,119 $7,551 $8,405 Median Value $396,300 $399,700 $438,800 $457,300 $466,500 $501,000 $530,650 $548,500 $551,300 $571,800 $659,900 $1,102 $1,930 $5,449 $8,405 $- $1,000 $2,000 $3,000 $4,000 $5,000 $6,000 $7,000 $8,000 $9,000 "Median" Value Home Property Tax History www.EdinaMN.gov 28 $999 $1,056 $4,522 $4,606 $0 $1,000 $2,000 $3,000 $4,000 $5,000 $6,000 $400,000 Edina Home Property Tax History City Tax Total Tax The CITY ofEDINAMedian Home –CPI Adjusted www.EdinaMN.gov 29 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Total City (2003 dollars)$869 $884 $927 $972 $991 $1,021 $1,062 $1,115 $1,076 $1,059 $1,187 Total Tax (2003 dollars)$4,298 $4,347 $4,527 $4,872 $4,782 $4,922 $5,030 $5,128 $4,805 $4,663 $5,170 Median Value $396,300 $399,700 $438,800 $457,300 $466,500 $501,000 $530,650 $548,500 $551,300 $571,800 $659,900 $1,187 $4,298 $5,170 $- $1,000 $2,000 $3,000 $4,000 $5,000 $6,000 "Median" Home Property Tax History Adjusted for CPI (2003 dollars) The CITY ofEDINANext Steps •Approve CIP •Public Hearing open until Monday, December 12 •Approve 2023 operating budget and certify 2023 Levy by approving Resolution 2022-109 on Dec. 20. www.EdinaMN.gov 30 The CITY ofEDINAQuestions/Discussion www.EdinaMN.gov 31 The CITY ofEDINA2023 Estimated Levy Impacts •In 2021 the median valued home (MVH) pays about $142 per month in property taxes to fund all City provided services. •Total EMV is increasing by about 12.4% for taxes payable in 2023. The MVH is now $659,900. •With a 10.75% property tax levy increase, the effect on the 2023 MVH would be about a: •-2.37% decrease in City property taxes. •-$48.22 decrease per year, or savings of about $4.02 per month. www.EdinaMN.gov 32 2023 Estimated Levy Impact Median Value Home 2022 Paid (Monthly) 2023 Proposed (Monthly) % Change $ Change $571,800 $142 $138 -2.8%-$4 $659,900 $164 $159 -3.5% -$5 www.EdinaMN.gov 34 2023 Proposed Preliminary Levy Increase of 9.89% Edina Median Value Home 2021 2022 Change $547,800 $659,900 15% Edina Estimated Market Value 2021 2022 Change $13.3M $15.5M 12.4% The CITY ofEDINA2023 Estimated Levy Impacts •Total EMV is increasing by 12.4% over 2021 •In 2021, the median home was $571,800 and pays about $142 per month in property taxes to fund all City provided services. •The median value single family home for 2022 is now $659,900. •With the 5.76% property tax levy increase for 2023, the tax impact on the median valued home would be about a: •-5.2% decrease in City property taxes. •-$106 decrease per year, or savings of $8.82 per month. www.EdinaMN.gov 35 Date: December 6, 2022 Agenda Item #: IV. To:Mayor and City Council Item Type: Reports / Recommendation From:Addison Lewis, Community Development Coordinator Item Activity: Subject:Development Review Process Discussion CITY OF EDINA 4801 West 50th Street Edina, MN 55424 www.edinamn.gov ACTION REQUESTED: Discussion only. INTRODUCTION: Initiative #3 on the Planning Commission's 2022 Work Plan is to "review and recommend possible changes to the development review process including sketch plans, public feedback, and public hearings." At the work session, Commissioner Lori Olson will give a presentation on this topic and lead a discussion on possible recommendations that the Planning Commission is considering. ATTACHMENTS: Description Presentation Public Hearing Current Timeline Handout EXAMPLE - Public Hearing Notice Development Review Process December 6th, 2022 Background PC Work Plan •Initiative #3: Review and recommend possible changes to the development review process including sketch plans, public feedback, and public hearings EdinaMN.gov 2 Background •Research was done to compare Edina’s development review process with other nearby cities •Planning Commission held a work session on Nov. 15th to discuss goals and possible changes to the development review process EdinaMN.gov 3 Opportunities to provide input •Public Hearing •Attend public hearings •Call in to public hearing •Better Together website •Leave a voicemail EdinaMN.gov 4 What we know about barriers to participation EdinaMN.gov 5 *Source, International Association for Public Participation People don’t know when or how to participate Communication method for notices are not clear Process is complicated The decision to be made is unclear People are unable to participate Time, location and number of public meetings Frustrating and difficult for residents to attend multiple meetings on same topic People don’t trust the process Public hearings occur at the end of the process Late meetings look and feel less transparent Individuals who commented in the past don’t feel like their participation mattered Possible Recommendations •Eliminate public hearings for projects that only require site plan review. •Conduct one public hearing at either the Planning Commission or City Council for PUDs and rezonings. EdinaMN.gov 6 Yes No PC Public Hearing CC Public Hearing Sketch Plan Review PC Preliminary PUD PC Public Hearing Preliminary PUD CC Public Hearing Final PUD CC Review Preapplication Conference w/ staff Sketch Plan Review CC Neighborhood Meeting Preliminary PUD CC Action Public Hearing PC or CC Meeting No Public Hearing Optional Step PC = Planning Commission CC = City Council Proposed Development Complies with underlying zoning? Site Plan Review PUD*Rezone to Other Base Zoning District* Building Permit Building Permit PC Public Hearing CC Public Hearing Building Permit Building Permit *Site Plan Review occurs concurrently with any application for PUD or rezoning to other base zoning district Existing Process Sketch Plan Review PC Sketch Plan Review CC CC Action CC Action Yes No PC Recommendation CC Public Hearing Sketch Plan Review PC Preliminary PUD PC Recommendation Preliminary PUD CC Public Hearing Final PUD CC Review Preapplication Conference w/ staff Sketch Plan Review CC Neighborhood Meeting Preliminary PUD CC Action Public Hearing PC or CC Meeting No Public Hearing Optional Step PC = Planning Commission CC = City Council Proposed Development Complies with underlying zoning? Site Plan Review PUD*Rezone to Other Base Zoning District* Building Permit Building Permit PC Recommendation CC Public Hearing Building Permit Building Permit *Site Plan Review occurs concurrently with any application for PUD or rezoning to other base zoning district Remove Public Hearing from PC Alternative 1 Remove Public Hearings from PC & CC (reduces one meeting) Remove Public Hearing from PC Sketch Plan Review PC Sketch Plan Review CC CC Action CC Action Yes No PC Recommendation CC Public Hearing Sketch Plan Review PC Preliminary PUD PC Public Hearing Preliminary PUD CC Public Hearing Final PUD CC Review Preapplication Conference w/ staff Sketch Plan Review CC Neighborhood Meeting Preliminary PUD CC Action Public Hearing PC or CC Meeting No Public Hearing Optional Step PC = Planning Commission CC = City Council Proposed Development Complies with underlying zoning? Site Plan Review PUD*Rezone to Other Base Zoning District* Building Permit Building Permit PC Public Hearing CC Public Hearing Building Permit Building Permit *Site Plan Review occurs concurrently with any application for PUD or rezoning to other base zoning district Remove Public Hearing from CC (reduces one meeting) Alternative 2 Remove Public Hearings from PC & CC (reduces one meeting) Remove Public Hearing from CC (reduces one meeting) Sketch Plan Review PC Sketch Plan Review CC CC Action CC Action Questions for City Council EdinaMN.gov 10 Public Hearing Workflow Monday Tuesday Wednesday Thursday Friday Sat Sun Key = On-line public hearing = Comment deadline = In-person Public Hearing = Comment period closed; no more comments included in final record Day 1 Public Hearing Notice Mailed Public Comment Period Opens 2 3 Day 4 Day 5 Day 6 Day 7 Public Comment Report completed for Planning Commission packet Day 8 Planning Commission Packet Published 9 10 Day 11 Day 12 Day 13 Planning Commission in-person Public Hearing Public Comment to-date report emailed to commission Day 14 Day 15 16 17 Day 18 Day 19 Day 20 Day 21 Day 22 23 24 Day 25 Public Comment Report Completed for City Council packet Day 26 Day 27 Day 28 Day 29 City Council Meeting Packet Published 30 31 Public Hearing Current Process Timeline Day 32 Day 33 City Council in-person Public Hearing Day 34 Day 35 Day 36 37 38 Day 39 Public Hearing Closes/Public Comment Period Closed Public Comment Report Completed for Meeting Packet Day 40 Day 41 Day 42 Day 43 City Council Meeting Packet Published 44 45 Day 46 Day 47 City Council Meeting Final Decision Public Hearing Process Complete Public Hearing Notice Planning Commission, 7 p.m. Wednesday, September 28, 2022 City Council, 7 p.m. Tuesday, October 18, 2022 September 16, 2022 Case File: 2022.12 English: This and other public hearing notices can be viewed online at EdinaMN.gov/PublicNotices. Español: Este y otros avisos de audiencia pública se pueden ver en línea en EdinaMN.gov/PublicNotices. Soomaali: Tan iyo ogeysiisyo kale oo dhagaysi dadweyne ayaa lagu daawan karaa onlayn ahaan EdinaMN.gov/PublicNotices. Special X Properties LLC is proposing to remodel and expand the existing Kee’s auto repair shop at 6016 Vernon Avenue into a 2,300 square foot, 59-seat restaurant. The existing site is zoned PCD-4, Planned Commercial District, which allows only automobile service centers, gas stations and car washes. Restaurants are allowed uses in the PCD-1, Planned Commercial Zoning District. The site is guided in the Comprehensive Plan for medium density residential use. To accommodate the request the following is required:  Comprehensive Plan Amendment from Medium Density Residential to Neighborhood Node.  A Rezoning from PCD-4, Planned Commercial District 4 to PCD- 1, Planned Commercial District 1.  Building Addition Setback Variances: 1) Front Setback Variance to Eden Prairie Road from 35 to 12 feet; and 2) Side Yard setback variance from 25 to 5 feet.  A Front Setback Variance for the patio built toward Eden Prairie Road from 35 feet to 1-foot.  A Parking Lot Setback Variance from 10 feet to 0 feet to expand the parking area along the west lot line.  A Comprehensive Plan Amendment from Medium Density Residential to Neighborhood Node. LEGAL DESCRIPTION OF PROPERTY: Tract C, Registered Land Survey No. 194, files of the Registrar of Titles, except that part of said tract embraced within Registered Land Survey No. 1081, Hennepin County, Minnesota. HOW TO PARTICIPATE: Public hearing input can be provided in a variety of ways to the Planning Commission and City Council. Options 1 & 2 are available now: 1) Complete the Public Hearing Comment Form online at https://www.bettertogetheredina.org/public-hearing-6016-vernon   2) Leave a voicemail with your feedback. (952-826-0377) Options 3 & 4 are available the night of the public hearing meetings: 3) Watch the meeting and call in to provide testimony. a. Edina TV (Comcast Channels 813 or 16) b. Facebook.com/EdinaMN c. EdinaMN.gov/LiveMeetings  Planning Commission: Call in to provide live testimony at the September 28 meeting, 888-504-7949. Use Participant Passcode 326815.  City Council: Call in to provide live testimony at the October 18 meeting. 888-504-7949. Use Participant Passcode 167455. 4) Attend the meetings to provide testimony, City Hall Council Chambers, 4801 W. 50th St. ADDITIONAL INFORMATION ON OTHER SIDE DEADLINES: The Planning Commission is scheduled to make a recommendation at its September 28 public hearing meeting. Deadline for comments via voicemail or BetterTogetherEdina.org is Noon, Thursday, September 22 The City Council will hold the public hearing at its October 18 meeting and is scheduled to make a decision at its November 1 meeting. Deadline for comments via voicemail or BetterTogetherEdina.org is Noon, Monday, October 24 FURTHER INFORMATION: City of Edina Planning Division, 4801 W. 50th St., Edina, MN 55424, 952-826-0369